The acquisition will be financed in part through any offering surplus available in the SR18 million fund, said the company in a statement.

While the remaining amount SR77 million will be secured through loans from local banks, it stated.

Mulkia Plaza Development Real Estate Fund, managed by Mulkia Investment Company, owns a 24 per cent stake in the project, which boasts a built up area of 7,200 sq m.

The project lease contract has been signed by Forus Real Estate investment & Development Company for a period of 20 years starting with a lease amount of SR1.1 million for the first five years. The rent will increase by 7 per cent every five years, said the company statement.

Mulkia Gulf Real Estate REIT share in the rent is SR8.3 million per year, it added.-TradeArabia News Service